GBP/USD Forecast February 3, 2016, Technical Analysis

The GBP/USD pair initially fell during the day on Tuesday, but turned back around to form a bit of a hammer. The hammer is suggesting that the market is going to try to reach above the 1.45 level. If and when it does, is very likely that this market will continue to go towards the 1.40 level. A break down below the bottom of the hammer of course is a negative sign though, and would have us selling at that point in time. At this point in time though, the one thing that we do think is going to be common is of volatility.